Air Arabia is the first and only low-fares airline in the Middle East and North Africa region based in Sharjah nternational Airport. It is formed after leading American and European low-cost airlines on the 3rd February 2003 and is customized to local preferences. It has been flourishing since its commencement with the fast growth to about 30 destinations within 3 years.

Two characteristics of Air Arabia’s “core strategy” derive from its unique business approach: “The business mission” and “Basis for differentiation”. The business mission refers to revolutionize air travel in the region through an innovative business approach offering superb value for money and a safe, reliable operation that enable customers to afford. Through its value proposition and commitment, “Be Smart, Pay less, Fly more” Air Arabia set itself apart from its competitors in the Middle East as one of the world’s leading budget airlines in terms of profit margin, innovation, reputation and operational excellence. Air Arabia also benefits from highest operational standards with lowest cost of each passenger (due to the raise in number of flights) among its rivals resulting in attracting a massive segment of the market. This is the direct indication of a basis for differentiation.

In addition, the customer interface of Air Arabia is based on its “pricing structure”. Its main focus is to make air travel more convenient and frequent through internet booking (E-ticketing) and offering the lowest fares in the market without sacrificing on service, safety standards and agency costs. This is a direct reference to the success of such a fast growing airline and the best answer to this question:

Why Air Arabia crossed the 2 million passenger milestone in March 2006?

McDonald Approach

McDonald is one of the America’s biggest solid money generators in terms of sale and performance. Because of the strong rivalry among competitors in the fast food industry,
McDonald’s has been running its business more efficiently than the others that can affect its market share and competitiveness. Although, considering this article the health issue arose basically from media and consumer protection agencies regarding to the unhealthy eating and danger of fast food.

The special business model adopted by McDonald considers the Gray Hamel’s Business Concept Innovation (BCI) framework. The McDonald’s core strategy is a basis for differentiation and how it set itself apart from the competitors by taking steps to improve the healthier of its food from high-fat and cholesterol-content meals. For example, McDonald’s launched one of its “health” food campaigns promoting its range of salads and low-fat meals for the past three years.

Additionally, McDonald’s unique business model of concentrating more on healthier menus and low-fat foods reminding me of David Baron called “non-market environment” issues. Both “Interest group” such as: McDonald’s consumers, health watch group and
“Institution” like: media, agencies for the health issues are the two fundamental facets in “non-market environment” of the McDonald.

Finally, I believe that McDonald should have taken this action earlier to respond to such an attack from media and critics. While I do agree that such a giant corporation with the stores all over the world still has to seize more opportunities to react to this battle not only when forced to do so.

Effect of Danish Boycott Patchy

The recent reaction of the Danish Boycott had a significant impact on the Muslim countries. The anger sparked by the cartoons depicting the Prophet Muhammad (peace be upon him) were originally published by the Denmark’s daily newspaper. Both pulling out all Danish products from the hypermarket shelves and leaving their shelves empty for the customers are the best indicator of how strong buyer power can be. This incident clearly supports the Porter’s Competitive Model.

Not only passing e-mails and text messages insist on boycotting Danish products but also Muslim’s petition and phone call are demanding on the Danish government to apologize for such an offensive behavior. These are the best illustrations to proof how customer power plays an imperative role to reinforce the Porter framework in this article.

Taking into consideration, the huge number of the population in the Muslim countries with the high buyer power will lead to take out such a division from the market will hurt the companies’ sales and profit while importing the Danish products accounted for more than five percent in terms of income. This will affect a very large slip down in their sales in product volume, provided that their main buyers are in the Arab world.

Relating to this article, the switching cost for the Muslims to buy other brands is very low. In fact, there is no switching cost incurred in this case. Consumers can easily switch to buy another or even local products, even if those products have a higher price with the lower quality. Another issue that I would like to address is the customer interface business facets: “Information and Insight” has been influenced by prohibiting the Danish products. For the reason that Supermarkets have also given out flyers including a photograph of Danish Feta Cheese with the word “Canceled” to show the people their support of the boycott which had a severe impact on the products’ sale.

As the final point, I personally believe that it is imperative to respect the values and principals of others, regardless of whether they are support my beliefs or not.

Picketers for Hire

Wal-Mart became one of the most successful retailers in America example of both managing rapid growth and creating an efficient strategy to compete globally. By expanding its size, increasing its products range in its stores, Wal-Mart was successful in building an international reputation and its position in the competitive retailing market.

To analyze the article from the Hamel’s Business Concept Innovation (BCI) model, we can conclude that the Wal-Mart’s core strategy is to meet customer’s need with the “always low price”- pricing structure- and “diverse” products. In other words, it comes up with a strategy to enhance its position in the market place above the rivalry. To be able to accomplish “always low-price” and “cost-cutting” strategy, Wal-Mart had to drag down the wages and health-care. Given that employees’ salary is one the most important cost factors for such a giant retailer, hiring the employees with the bottom in earnings and benefits seems to be the best solution to reduce cost.

As we know, “relationship dynamic” element is referred to the nature of the interaction between the company and its customer. In Wal-Mart's case, the basic value is customer service: finding new markets to enter, differentiating customers to various segments (diversification), understanding each customer’s needs and wants, recognizing the company’s ability to satisfy those needs and wants, and come up with different products and services are now the key dimensions to enable it to have its wining strategy “always low prices” in all over the world.

This article can also be regarded as the David Baron “non-market environment” issues. Increasing unsatisfied workers complaining of low pay, inadequate and unaffordable healthcare, lake of transportation on weekends and off the clock work are the fundamental facets in the “non-market environment” issues. The interest groups here are the temp workers and the Wall-Mart employment practices. The main institution in this article is United Food and commercial Workers (UFCW) which is considered as the labor suppliers to Wall-Mart and signs supplier for the protestors. Besides, Wall-Mart employees are being well informed about the working environment in the neighborhood market by UFCW.

As a result, with an intense competition Wal-Mart become successful retail stores in the world who attained the “always low-price” strategy.

Ports of CFIUS call

Dubai Ports World’s acquisition of P&O was the recent battle for Dubai against Singapore’s PSA with the cost of USD 6.8 Billion!!! This will rank DP World as the third largest ports operator in the world managing 51 terminals in 30 countries around the world, including 6 ports in the united state.

The special business model adopted by DP World’s acquisition considers the Gary Hamel’s Business Concept Innovation (BCI) framework. This acquisition will enhance DP World’s skills and capabilities to control over its company which directly reveals the company’s “core competencies”. Besides, the acquisition of P&O-one of the oldest symbols of the British Empire-obviously reflect the DP World’s “product and market scope” authorizing operate in a much wider range of network than before and become the third largest port operator in the world form being seventh. Hence, expanding the larger shipping service with the rapid growth is the direct indication of the effective “core strategy”.

Porter’s five forces model could also be applied in this article, because DP World reinforced its position by acquiring one of its rivals. Consequently, a larger “economics of scale” benefits DP World since having a larger network around the word not only will amplify the DP World’s own resources but also increase the barrier to entry. This new acquisition will also increase DP World assets and capital requirements for the government –based company resulting in reducing competition in the region. In addition, DP World founded its status and reputation in the market by managing several ports successfully and now by buying out one of its competitors will become the third largest port operator in the world. This is the direct reference to the company’s “product differentiation” which one of the imperative barriers to entry. As a result, barriers to entry are quite high.

Putting all together provides us with some insights in whether the acquisition of P&O is a right decision for DP World or not?

Today’s M.B.A Expectation


Getting M.B.A as a resume enhancer or having the aptitude to do well in the job?

“The economy is definitely having an impact on how students are considering M.B.A programs,” concurs Liz M. Riley, assistant dean for the M.B.A program and director
of admissions at Duke University’s Fuqua School of business.

In an increasingly global competitive environment, it is extremely important to train high potential M.B.A students with the capability of using new knowledge to be leaders in business development activities worldwide. Indeed, in their future, they will serve in key managerial position across the organizations, but at the same time they will be required to deeply understand the societal problems from different perspectives. In order to get these ambitious results, many Business schools conduct “valuable” strategies to be top-tier ones in the today competitive work environment, such as, Fuqua University, Babson College, Depaul University and Wake Forest University sine they enable students to respond to environmental threats or opportunities. So, at the end of the two-year trip, students know what they will be able to obtain a job in their chosen field.

Primarily, Fuqua University has been extremely responsive to assisting students by establishing campaign called “Hire Up”. The three-month campaign allows the university to take advantages of opportunities that arise from competitors by generating 56% increase in job opportunities. Consequently, they respond well to environmental threats.

Secondly, Babson College customized a distance-based program called Fast Track M.B.A by providing an accelerated 27-month curriculum for who want to keep their full-time jobs. I believe that this approach can not be considered as a sustained competitive advantage for the reason that it is easy to imitate and other colleges can directly duplicate the resources.

Thirdly, Depaul University takes an action role in effort to enhance master program be innovative and unique by applying teach proficiencies and motivated development strategies which are consist with the overall objectives of the university. These policies conceived as “valuable” strategic strength compared to the competitors.

Finally, Wake Forest University provided each student a laptop sponsored by Dell Company resulting in participation of twenty-two students this year at no cost. “Basis for the differentiation” makes them stand out of others.

In conclusion, I believe that getting M.B.A is essential to move beyond the chosen field, broader a business vision and integrate in a global environment.
http://www.blackenterprise.com/ExclusivesEKOpen.asp?id=619

Moving in the right direction


I believe that “core strategy” and “customer interface” are the most significant drivers for the retailers to stay on top of management in the U.A.E (http://archive.gulfnews.com/articles/06/01/23/10013588.html)

In terms of “core strategy” I think that “the business mission” plays an important role in Retail Industry success in the U.A.E. This due to the way Retail Industries define their mission by delivering experience, not just the basic goods. They do so through promoting U.A.E. as the third most successful country in the world at shopping centre marketing and as a leader in the field.

Additionally, “Basis for the differentiation” in the “core strategy” is responsible to keep on with the market flow. This capture the attention of the world in the Middle East by considering the changes required to keep up with the customer needs and compete differently than its competitors. Retailers attempt to satisfy customer evolution by offering innovative management techniques and ambitious development strategies which are consist with the overall objectives and goals. So, making them stand out and be different from their competitors.

Moreover, I think that the aspect of Retailer’s “customer interface” should also be considered is “Information and Insight”. This is because retailers and regional shopping managers know how to go to the market and target customers. They are seeking to keep people entertained. They provide their consumers family entertainment, multiplex cinemas, large food and beverage component and theme parks.

Finally, I conclude that both “core strategy” and “customer interface” should be given credit to move in the right direction.

"u r my life, my pride, my joy" elvis was right :-)